The United States and China announced phase-1 trade deal that includes some tariff relief.
Below are three important outcomes of the phase-I talks:Voicing his opinion on the above development, Eric Fishwick, CLSA said, "We expect that the Phase-1 deal will be it. This means that US tariffs on around $250 billion of Chinese exports remain subject to 25 percent tariffs with 7.5 percent tariffs on a further $120 billion. This is not a tariff removal that will move the dial on world trade."
"As a best-case forecast we expect that the optimism will fade quickly. The danger, given the prevailing hawkishness towards China across the US political spectrum, is that facing a lack of progress Trump ups the criticism of China for domestic political reasons. For this reason our forecast is that trade tensions will remain high. Our recommendation is that investors focus on what happens next," he further stated.
